1. Sales Data:
   • Sales Price per TechThing: $50
   • Units Sold: 10,000 TechThings
2. Manufacturing Data:
   • Direct Materials Cost per TechThing: $10
   • Direct Labor Cost per TechThing: $8
   • Fixed Manufacturing Overhead Costs: $40,000
3. Operating Expenses:
   • Selling Expenses: $10,000
   • Administrative Expenses: $15,000

Altac Manufacturing is considering two options to improve profitability: Option 1: Invest in new manufacturing equipment that reduces direct labor costs by 20% OR Option 2: Increase the selling price by 10% to capture a larger market share.

Analyze each option separately and recommend the option that would yield the highest increase in net income. Present calculations and reasoning to support your recommendation. You may also attach a document (not required) to support your response.